Volume 2012 (2012), Article ID 573826, 8 pages
Wagner's Law in Sri Lanka: An Econometric Analysis
Department of Economics, University of Colombo, Colombo 00300, Sri Lanka
Received 19 August 2012; Accepted 20 September 2012
Academic Editors: B.-L. Chen, C. Le Van, and M. Tsionas
Copyright © 2012 Mayandy Kesavarajah. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
- R. A. Musgrave and P. B. Musgrave, Public Finance: In Theory and Practice, Mc-Graw-Hill International, NewYork, NY, USA, 1989.
- A. Wagner, “Extracts on public financ,” in Classics in the Theory of Public Finance, R. A. Musgrave and A. T. Peacock, Eds., Macmillan, London, UK, 1958.
- J. M. Keynes, General Theory of Employment, Interest and Money, Harcourt, Brace and Co, New York, NY, USA, 1936.
- W. A. Dilrukshini, “Expenditure and economic growth in Sri Lanka: co-integration analysis and causality testing,” Staff Studies, vol. 34, pp. 51–68, 2004.
- S. Herath, “Size of the government and economic growth: an Empirical Study of Sri Lanka,” SRE—Discussion Papers 2010/05, WU Vienna University of Economics and Business, Vienna, Austria, 2010.
- R. M. Bird, “Wagner’s law of expanding state activity,” Public Finance, vol. 26, no. 1, pp. 1–26, 1971.
- A. T. Peacock and J. Wiseman, Growth of Public Expenditure in the United Kingdom, NBER and Princeton: Princeton University Press, Cambridge, UK, 1961.
- S. P. Gupta, “Expenditure and economic growth: a time series analysis,” Public Finance, vol. 22, no. 4, pp. 111–120, 1967.
- C. W. J. Goffman, “On the empirical testing of wagner’s law: a technical note,” Public Finance, vol. 23, no. 3, pp. 359–364, 1968.
- F. L. Pryol, Public Expenditure in Communist and Capitalist Nations, George Allen and Unwin, London, UK, 1969.
- A. J. Mann, “Wagner’s law: an econometric test for Mexico, 1925–1976,” National Tax Journal, vol. 33, no. 2, pp. 189–201, 1980.
- K. D. Ranjan and C. Sharma, “Expenditure and economic growth: evidence from India,” The ICFAI University Journal of Public Finance, vol. 6, no. 3, pp. 60–69, 2008.
- B. Singh and B. S. Sahni, “Causality between public expenditure and national income,” The Review of Economics and Statistics, vol. 66, no. 4, pp. 630–644, 1984.
- F. G. Castles and S. Dowrick, “Impact of government spending levels on medium term economic growth in the OECD, 1960–1985,” Journal of Theoretical Policies, vol. 2, pp. 173–204, 1990.
- S. Devarajan, V. Swaroop, and H. F. Zou, “The composition of public expenditure and economic growth,” Journal of Monetary Economics, vol. 37, no. 2, pp. 313–344, 1996.
- E. Dogan and T. C. Tang, “Government expenditure and national income: causality tests for five south East Asian countries,” International Business and Economic Research Journal, vol. 5, no. 10, 2006.
- S. Verma and R. Arora, “The Indian economy support Wagner’s law? An econometric analysis,” Eurasian Journal of Business and Economics, vol. 3, no. 5, pp. 77–91, 2010.
- M. Afzal and Q. Abbas, “Wagner’s law in Pakistan: another look,” Journal of Economics and International Finance, vol. 2, no. 1, pp. 12–19, 2012.
- Y. Zheng, J. Li, X. L. Wong, and C. Li, “An empirical analysis of the validity of Wagner’s law in China: a case study based on Gibbs sampler,” International Journal of Business and Management, vol. 5, no. 6, 2010.
- P. A. Olomola, “Cointegration analysis-causality testing and Wagner’s law: the case of Nigeria,” Journal of Social and Economic Development, vol. 6, no. 1, pp. 76–90, 2004.
- J. Komain and T. Brahmasrene, “Relationship between government expenditures and economic growth in Thailand,” Journal of Economics and Economic Education Research, vol. 8, no. 1, pp. 93–102, 2007.
- R. J. Barro, “Economic growth in a cross section of countries,” Quarterly Journal of Economics, vol. 106, no. 2, pp. 407–443, 1991.
- J. Loizides and G. Vamvoukas, “Expenditure and economic growth: evidence from trivariate causality testing,” Journal of Applied Economics, vol. 8, pp. 125–152, 2005.
- B. Yu, S. Fan, and A. Saurkar, “Does composition of government spending matter to economic growth?” in Proceedings of the International Association of Agricultural Economists Conference, Beijing, China, August 2009, http://ageconsearch.umn.edu/bitstream/51684/2/IAAE%20government%20spending.pdf.
- A. Ramayandi, “Growth and government size in Indonesia: some lessons for the local authorities,” Working Papers in Economics and Development Studies 2003/02, Department of Economics, Padjadjaran University, 2003.
- S. Alam, A. Sultana, and M. S. Butt, “Does social expenditures promote economic growth? A multivariate panel cointegration analysis for Asian Countries,” European Journal of Social Sciences, vol. 14, no. 1, pp. 44–54, 2010.
- Central Bank of Sri Lanka, Annual Reports, Various Years.
- R. F. Engle and C. W. J. Granger, “Cointegration and error correction: representation, estimation, and testing,” Econometrica, vol. 55, no. 2, pp. 251–276, 1987.
- D. Gujarati, Basic Econometrics, Mc.Graw-Hill International Edition, NewYork, NY, USA, 3rd edition, 1995.
- C. W. J. Granger and P. Newbold, “Spurious regressions in econometrics,” Journal of Econometrics, vol. 2, no. 2, pp. 111–120, 1974.
- C. W. J. Granger, “Some properties of time series data and their use in econometric model specification,” Journal of Econometrics, vol. 16, no. 1, pp. 121–130, 1981.